The GBPUSD has fallen below the 100 hour MA and the 38.2% retracement of the move up from Friday’s low. The market did find willing sellers against the 200 hour MA yesterday and in the early hours of trading for today. The inability to break above this level gave sellers confidence. Risk was defined. Risk was limited to a move above the moving average leverage. When the tide started to turn toward the dollar, the selling intensified.
Now with the price below the 100 hour MA and 38.2% retracement, those levels will now be eyed as resistance (1.6113-17). If the price can remain below this level, the downside should move toward the 1.6087 level. There should be some profit taking buyers against this level at least on the first test. A break however, should not be faded.
If the 1.6113-17 level is breached the intraday correction will look toward 1.6135. (www.dailymarkets.com)